Govt awards one oil, 7 coal-bed-methane blocks

The government on Thursday awarded seven coal-bed-methane (CBM) blocks for exploration, with Essar Oil bagging four of them.
While approving the award of the CBM blocks, the Cabinet Committee on Economic Affairs also awarded one oil exploration block under the New Exploration Licencing Pol

The government on Thursday awarded seven coal-bed-methane (CBM) blocks for exploration, with Essar Oil bagging four of them.

While approving the award of the CBM blocks, the Cabinet Committee on Economic Affairs also awarded one oil exploration block under the New Exploration Licencing Policy (NLEP).

"The decision will accelerate exploration and production activities in the country and is expected to result in hydro-carbon reserve accretion, thereby increasing the energy security of the country," Home Minister P Chidambaram told reporters after the meeting.

Arrow Energy won two CBM blocks through two separate joint ventures with Oil India Ltd and Tata Power Co Ltd, while one block went to Great Eastern Energy Corporation.

The CBMs were awarded after the fourth round of bids. The lone NELP block went to a consortium led by Jubilant Oil and Gas Pvt Ltd after the eighth round of bid.

"There is no expenditure involved on the part of the Government of India in respect of the exploration of the blocks being awarded. The expenditure would be incurred by the awardee companies," he said.

Moreover, the CCEA rejected seven bids by Deep CH4 Private Limited-led consortium and three bids by Kalahari Energy led consortium for non-submission of required bid documents as per the Notice Inviting Offers (NIO) under CBM-IV.

It also rejected a bid by Deep CH4 Private Limited led consortium in respect of one block, namely, SR (W)-CBM-2008/IV due to non-submission of required bid documents.

The fourth round of bid for CBM blocks was launched in April last year with ten blocks covering an area of about 5,000 sq km on offer.

The eighth bid round of NELP was launched in April 2009, with 70 blocks covering an area of about 1.64 lakh sq km on offer. The bids were opened in October, 2009.

The two on-land blocks, VN-ONN-2009/1 and VN-ONN-2009/2 were not considered for award under NELP VIII in view of very low percentage share of profit petroleum offered to the government.

The block AA-ONN-2009/2 could not be awarded due to representation received from the bidder, which finally got the CCEA nod today.

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